EU approves €623 million German aid for two chip fabs
The European Commission has approved EUR 623 million in German State aid to support the construction of two semiconductor manufacturing facilities in Dresden and Erfurt,
The funding includes a EUR 495 million grant for GlobalFoundries and EUR 128 million for X-FAB. Both projects are intended to establish "first-of-a-kind" semiconductor production capacities in the EU, advancing the region's semiconductor supply chain.
GlobalFoundries' Dresden expansion, known as the "SPRINT" project, will create new 300 mm wafer manufacturing capacity. The facility will adapt technologies from the IPCEI Microelectronics & Communication Technologies initiative for dual-use applications, including aerospace, defence, and critical infrastructure. According to the Commission, this will be the first large-scale production of such technologies in Europe.
X-FAB’s "Fab4Micro" project in Erfurt will develop an open foundry combining existing capabilities in MEMS with advanced packaging and integration processes. The facility is designed to serve European fabless chip companies, including start-ups and small and medium-sized companies, which currently rely primarily on overseas foundries. Commercial operations are expected to begin by 2029.
"Open foundries are vital for boosting competition and innovation in Europe’s semiconductor sector. These two measures will allow the creation of two new facilities that Europe does not yet have, helping to reduce our dependence on foundries outside the EU and strengthening the resilience of Europe’s entire industry," says Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, in a press release.